Board hears public hearing on $7.5 million school budget amendment and health fund transfer

The board held a public hearing on an amendment to the FY2026 budget to appropriate $7,500,000 from general fund balance to the Fauquier County school division operating fund. Staff said $5,700,000 would be transferred to the school division asset fund and $1,790,000 would go to the school's health insurance fund. The resolution also recognizes a $65,000 state grant from the Virginia Department of Education for a school security program with a $16,000 local match.

Finance staff said the public hearing is required by Virginia code because of the dollar amount. "This resolution appropriates $7,500,000 to the school division operating fund from general fund balance," the county presenter said and invited questions about fund use and replenishment.

Prashant Shrestha, assistant superintendent for business and planning, told the board the school division has been pursuing a multi-year plan to manage health insurance claims and said high-cost claimants were the principal driver of higher-than-projected claim costs. "The fiscal policy states that it needs to be replenished back to the 20% within a year," Shrestha said of the health insurance reserve and added the division has plans to follow that rule.

Board members debated alternatives, including retaining a portion of the carryover to reduce county debt, using funds for cash-to-capital projects, or applying funds toward staff salary adjustments through position-control savings. One supervisor urged consideration of retaining half the carryover for debt reduction; another argued using one-time dollars to fund capital priorities is best practice.

No final vote on the appropriation was recorded during the hearing; staff said the figures and requests will be incorporated into the county administrator’s proposed budget and will return for formal action and public comment during the CIP/budget public hearings.